Poet AGM Slide Presentation 2018 - POET Technologies, Inc.

© POET Technologies Inc. | Public 1© POET Technologies Inc. | TSXV: PTK.V | Public

POET Technologies, Inc.Annual and Special Meeting of Shareholders

June 21, 2018

© POET Technologies Inc. | Public 2© POET Technologies Inc. | TSXV: PTK.V | Public 2

Outside Meeting Room:

9:30am – 10:00am Check-in of Shareholders

Inside Meeting Room:

10:00am – 10:05am Introductions and Call to Order Tom Mika

10:05am – 10:30am Annual General Meeting Dave Lazovsky

10:30am – 11:15am Presentation and Update Suresh Venkatesan

11:15am – 11:45am Q&A Leanne Sievers (moderator)

11:45am – 12:00pm Thanks and Adjourn Dave Lazovsky

Order of Business


POET Annual and Special Meeting Agenda

• Appointment of Secretary of Meeting and Scrutineer• Notice of Meeting• Scrutineer’s Report• Destruction of Proxies• Minutes of the Previous Meeting• Financial Statements and Auditor’s Report• Set Number of Directors• Election of Directors• Appointment of Auditors• Approval of Stock Option Plan• Other Business• Termination of Meeting


Integrated PhotonicsTechnology and Business Update

June 21, 2018


Safe Harbor

This presentation contains forward-looking statements and forward-looking information within the meaning of U.S. and Canadian securities laws, including but not limited to statements relating to revenue potential, growth and/or projections such as those included at slides 8, 10, 22 and 23 of this presentation. Forward-looking statements and information can generally be identified by the use of forward-looking terminology or words, such as, "continues", "with a

view to", "is designed to", "pending", "predict", "potential", "plans", "expects", "anticipates", "believes", "intends", "estimates", "projects", and similar expressions or variations thereon, or statements that events, conditions or results "can", "might", "will", "shall", "may", "must", "would", "could", or "should" occur or be achieved and similar expressions in connection with any discussion, expectation, or projection of future operating or financial performance,

events or trends. Forward-looking statements and forward-looking information are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict.

The forward-looking statements and information in this presentation are subject to various risks and uncertainties, including those described under the

heading "Risk Factors" in the Corporation's annual information form, many of which are difficult to predict and generally beyond the control of the

Corporation, including without limitation risks: associated with the Corporation's limited operating history; associated with the Corporation's need foradditional financing, which may not be available on acceptable terms or at all; that the Corporation will not be able to compete in the highly competitivesemiconductor market; that the Corporation's objectives will not be met within the time lines the Corporation expects or at all; associated with research and

development; associated with the integration of recently acquired businesses; associated with successfully protecting patents and trademarks and otherintellectual property; concerning the need to control costs and the possibility of unanticipated expenses; associated with manufacturing and development;

that the trading price of the common shares of the Corporation will be volatile; and that shareholders' interests will be diluted through future stock offeringsor options and warrant exercises. For all of the reasons set forth above, investors should not place undue reliance on forward-looking statements.

Other than any obligation to disclose material information under applicable securities laws or otherwise as may be required by law, the Corporation

undertakes no obligation to revise or update any forward-looking statements after the date hereof.

5


Topics • Introduction

• Accomplishments

• Commercial Partners

• Product Development Progress

• POET Optical InterposerTM Overview

• Summary


POET Accomplishments

• Invented the Optical Interposer Architecture to provide a FLEXIBLE and VERSATILEopto-electronics hybrid packaging platform

• Established a Development and Manufacturing Agreement with SilTerra with favorable economics for Optical Interposer production

• Transitioned the dielectric waveguide from development in university lab to SilTerra production fab to enable seamless high-volume manufacturing ramp

• Established a Memorandum of Understanding with Accelink, as a lead customer and development partner for Datacom and Telecom applications

• Demonstrated 100Gbps Quad-PIN receivers for use with the optical interposer

• Invented new wafer level hermetic sealing technique compatible with the optical interposer assembly process


Accelink

• Lead Customer and Development Partner for Datacom and Telecom Solutions

• First products: 100G / 400G ROSA Optical Engines

• Subsequent Products: 100G / 400G TxRx Optical Engines; GPON Telecom solutions

• Early Prototypes to validate Optical Interposer functionality: Q3 2018

• Production Ready Prototypes: Q4 2018

• Production Revenues: 2019


SilTerra

POET’s Deposition and Etch tools installed in the SilTerra clean room• Development and manufacturing

partner with foundry capacity to meet Optical Interposer production requirements

• Unique combination of 193nm lithography and Cu Metallization coupled with CMOS and MEMs capability

• Joint development and investment in Optical Interposer volume manufacturing capacity


Almae Technologies

• Almae : Spin-off of III-V Lab (joint Nokia, Thales and CEA-Leti industrial research lab) with advanced epi capacity

• Joint development, manufacture and sales of optical engines based on POET Optical Interposer platform for Datacom and Telecom

• First products are high speed lasers for 100G &/ 400G Transmit engines integrated into POET Optical Interposer

• Prototypes expected in Q1 2019 with joint sales in 2019


Technology Development Progress since January 2018

Process/ Tools

• Interposer process development and production qualification – target completion in Q3 2018• 8 inch production tools procured and consigned at SilTerra – ready for wafer processing in July

Quad PIN Detector

• Samples delivered in Q2 2018• Product reliability complete through 1800+ hours with no failures• 25Gbps detector performance validated for 100Gbps (4 X 25)• Performance optimization ongoing• Evaluating potential to sell as discrete devices

Optical Interposer

• All required silicon and dielectric process flows established for 8” interposer wafers• Performance optimization for key lithography, deposition, etch processes ongoing

Packaging & Assembly

• Solder process developed and validated• Flip Chip process established with +/- 1um alignment accuracy• Quad PIN Detector RF performance validated after flip chip process• High frequency traces on interposer validated

Dielectric Filters and Waveguides

• Process successfully transferred to SilTerra• Faster development cycles in foundry environment• Mux / demux filter optimization ongoing



• Accomplishments




• Summary


Optical InterposerTM

Chip-scale Integration using POET Optical Interposer

Electrical Interposer

Electrical Die 1

Electrical Die 2

Electrical Die 1

Electrical Die 2

Optical Die 1,2

Electrical Interconnections

E le c tr ic a l D ie 1 E le c t r ic a l D ie 2

Optical Layer

Electrical Layer

E le c t r ic a l D ie 1 E le c t r ic a l D ie 2

O p t ic a l

D ie 1

O p t ic a l

D ie 2W a v e g u id e s

First practical application of 3D semi fabrication processes to photonic interposer devices:• Flip chip and under-bump metal• Through silicon vias (TSVs)• Pick and place assembly• Wafer-level test, burn-in and packaging • Compatible with Si CMOS processing


POET Optical InterposerTM Platform

Soldier Bump on Die Side

Waveguide LayerActive Die

Wafer Level Hermetic Cap Seat

Metal

W ir e b o n d

P a d

A c t iv e D ie

A t ta c hC u T r a c e

Multi-level (Optical) Cu Backend.Interposer Could Include Passives such as Resistors, MIM Caps etc.

High Resistivity Silicon Substrate

Scribe Street and Fiber Groove

Optical Axis

Extending the functionality of electrical interposers with Optical Waveguides

Low Loss, Low Stress and Low Temperature waveguides enable integration with conventional silicon technology

Waveguides built above top metal enables integration with IC’s


POET Optical Interposer with Dielectric Waveguides

H erm etic C ap

Q uad P IN (back side)

Interposer H erm etic C ap

Q uad P IN (front s ide)

InterposerQ uad P IN H ybrid Assem bly

• Optical Interposer - 8” wafer with active devices flip-chipped onto dielectric waveguides

• Using known good devices before final test enables highest yield and lowest cost

O ptical Interposers on 8” W afer Q uad P IN s on O ptical Interposers


POET Optical Interposer- based CWDM Laser Module

• Optical Interposer platform enables wafer-level packaging for CWDM Laser “sub-mount”

• Superior thermal properties and simplified packaging

• Hermetically sealed at the wafer level

• Next generation Data Center applications

POET Optical Interposer-enabled Light Engines

H erm etic C ap

Laser D ie

Interposer


POET Optical Interposer to solve key industry challenge

• Optics needs to get closer to the source of the data

• Optical Interposers with co-existing electrical and optical interconnections can enable low cost and high reliability optics packaging

Concept proposed by Microsoft at recent OFC conference in San Diego

Co-packaged Solutions with Switch ASICs


POETOptical InterposerPlatformA multi-purpose integration platform with unique benefits for transceiver manufacturers in datacom and telecom

KEY DIFFERENTIATORS:

Proprietary Dielectric Waveguides eliminate costly components and “active” alignment

• Ultra-low loss material improves coupling efficiency• Athermal – not sensitive to temperature changes• Passive devices embedded in dielectric at no added cost

System Architecture allows optimal power/performance/cost• Small form factor and elegant lateral optical axis design• High scalability for multiple protocols and increasing data rates• High flexibility platform for customized applications

Full Wafer-level Integration of all components• Fabrication, test, burn-in, packaging all at wafer level• Thousands of devices vs. one device at a time• Known good device assembly improves yield and lowers cost

True Silicon CMOS compatibility a disruptive advantage• On-chip integration with electronic devices• Competitive waveguides (glass, silica, SiN) NOT compatible with CMOS• Multiple applications beyond transceivers


Broad Range ofApplicationsData centers

Networking

Automotive

Industrial Sensing

High Performance Computing


POET Optical Engines - Addressing top two transceiver market segments

Ethernet Data Centers <1km reach both within and

between data centers

Wide Area Networks (Metro – intermediate) served

by 1km - 10km links

+

+ $-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2017 2018 2019 2020 2021

Serviceable Available Markets (SAM)

CAGR 27%2017 - 2021

Ethernet Data Centers Wide Area Networks


Wafer Fab Costs Packaging and Testing Costs

0% 50% 100%

Electronics

Photonics

• Packaging and testing are a large fraction of BOM cost of conventional Photonics devices

• Integration of devices is the only effective means to:• Improve size, power, cost, speed, reliability and

scalability• Enable new functionalities• Drive disruption in optical communications

Why Integration Matters Approximate Breakdown of Transceiver Costs

Transceiver Margins: 30%

Bill of Materials (BOM): 70%

Electrical Components: 25%

Optical Components: 30%

Packaging: 45%

75% of total BOM

POET’s Optical Engine reduces BOM Cost of

Transceiver by >50% = >100% Margin Increase for

Module Suppliers© POET Technologies Inc. | TSXV: PTK.V | Public21


2019 Market Price vs. Modeled POET Price* for 100G Optical Engines

100G Optical Engines PSM4 CWDM

Transceiver Pricing $150 $250

Price ofOptics + Packaging (minus electronics)

~$74 ~$150

Price ofPOET Optical Engine ~$25 - $40 ~$50 - $70

POET Solution

CompetitorOffering

POET Optical Engines can enable < $100 PSM4 Transceivers (< 1$/Gbps)POET Optical Engines can enable < $150 CWDM4 Transceivers

2-3x Reduction 2-3x Reduction

*modeled at production volumes



• Accomplishments




• Summary


1H 2018 2H 2018 1H 2019 2H 2019

Optical Interposer Platform Development

• Process transfer to S ilTerra

• M ulti-ch ip m odule qualification

• Portfo lio expansion in datacom (LR4)

• Portfo lio expansion to te lecom (G PO N )

• Portfo lio expansion to sensing (LID AR)

100G Product Milestones

• Q uad PIN qualification

• RO E prototype sam pling

• RO E qualification

• RO E custom er orders

• TRO E prototype sam pling

• TRO E qualification

• TRO E custom er orders

400G Product Milestones

• RO E prototype sam pling

• RO E custom er orders

Datacom Production Milestones

Solid progress with technical execution and strategic customer engagement

R O E = R eceive O ptical Engine TR O E = Transm it and R eceive O ptical Engine


Executing on Strategic Growth Plan

• Addressing large and rapidly growing sensing & datacom markets• POET products address multi-billion USD datacom market, growing at >25% CAGR

• Highly differentiated, IP protected technology• Low-cost leadership with highly scalable technology

• Leveraging innovative Optical Interposer platform architecture & proprietary dielectric waveguides

• Significant technology development and product qualification progress • Increased cycles of learning resulting from SilTerra manufacturing partnership

• Tracking to initial customer revenue ramp (including Accelink) starting in 1H 2019

• Manufacturing, assembly and test capabilities and supply chain partners established• Increasing customer traction with tier 1 data communications industry leaders

POET is well positioned for significant growth beginning in 2019

Poet AGM Slide Presentation 2018 - POET Technologies, Inc.

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Transcript of Poet AGM Slide Presentation 2018 - POET Technologies, Inc.